The National Association of Motor Auctions (NAMA) published its Light Commercial Vehicle (LCV) market report for May this week.

The report shows that the average value of used LCV’s at auction across the board increased 0.6% to £4.599 between April and May. Volumes saw a -4.1% decrease, and the average age of LCV’s sold at auction fell from 70.6 to 69.3 months.

The average number of days that LCVs remained on site declined to 14.9 days, and the average mileage decreased from 82,175 to 81,761 miles.

Price Changes by age

Feb-15

Mar-15

Apr-15

May-15

<2 Years

£11,410

£11,530

£11,560

£11,135

Previous month Diff

-0.6%

1.1%

0.3%

-3.7%

2 – 4 Years

£6,530

£6,690

£6,835

£6,670

Previous month Diff

-1.1%

2.5%

2.2%

-2.4%

4.1 – 6 Years

£4,615

£4,460

£4,825

£4,715

Previous month Diff

-2.8%

-3.4%

8.2%

-2.3%

Over 6 Years

£2,275

£2,180

£2,265

£2,405

Previous month

Diff

-3.8%

-4.2%

3.9%

6.2%

In May, the average price achieved for LCVs increased modestly by £27 (0.6%). However, as the average return has fallen by £325 (-6.6%) over the past 12 months it’s now apparent that price levels are gravitating to a more sustainable level.

Volume Changes by Age

Feb-15

Mar-15

Apr-15

May-15

<2 Years

684

460

499

400

Previous month Diff

43.1%

-32.7%

8.5%

-19.8%

2 – 4 Years

3,236

3,848

2,537

2,673

Previous month Diff

2.5%

18.9%

-34.1%

5.4%

4.1 – 6 Years

2,613

2,635

2,646

2,635

Previous month Diff

7.9%

0.8%

0.4%

-0.4%

Over 6 Years

4,033

4,386

4,291

3,859

Previous month Diff

9.8%

8.8%

-2.2%

-10.1%

At 9,567 units, despite 406 fewer LCVs being sold at auction in May when compared to the previous month, against the same month in 2014 volumes stood 14% higher. With a solid uplift of 5.4%, it was only the 2 – 4 year age band that delivered any growth although this followed the big fall posted by this sector in April.

Paul Hill, NAMA Chairman Comments, “Following some patchy performances earlier in 2015, May proved to be a good month for those wholesaling light commercial vehicles. Falls in average age, mileage and volume each helped deliver a modest, though welcome increase in average price.

“Perhaps the most encouraging statistic to be seen in this NAMA LCV Report was that at 77.5% (+5.3%) the percentage of LCV lots selling at the first time of being offered was the highest recorded in 6 months.

“As we move through the remainder of 2015, it is likely that relatively small swings in the balance between supply and demand will be felt more sharply. Where volumes fall short of the maximum that the trade can absorb, we can expect to see stable market conditions with prices holding firm. However, for any sector and/or age band where even just a few too many LCVs are being de-fleeted, price slippage should be anticipated.